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Performed 2 searches for info on locating source of water leaks into trunk. Found some "interesting" threads but after reading 7 pages of post returns on each search I am now starting a new post.

'01 325 convertible with factory hardtop. Hardtop has been installed since Sept. as we do get a little rain here in the Northwet. Smelled mildew, opened trunk and determined trunk as source of smell. Removed trunk contents, the carpet on the floor felt a little moist (I think), and removed spare to find an inch of water below the spare tire. Car is garaged when home but parked outside during 12 hour night shifts. After drying out the area where the spare goes water returned after a rainy night parked outside at the hospital.

Removed hard top and put up soft top. Soft top is fine, no visible signs or smell of mildew, for which I'm thankful. I have not parked the car outside in the rain since I put the soft top up.

How is the weather strip on the hard top? Did you lock it tight in the back? Sounds like its a large leak, spray water to see if you can spot the leak. Do this with soft top first to isolate the issue, ie hardtop or some other culprit

Sounds funny, but a friend tracked a leak by stuffing (and where necessary taping) a bunch of paper towel pieces inside his car in the areas around where the water was ending up, and then running it through a car wash and checking what got wet. Worked for him...

How is the weather strip on the hard top? Did you lock it tight in the back? Sounds like its a large leak, spray water to see if you can spot the leak. Do this with soft top first to isolate the issue, ie hardtop or some other culprit

Should be easy to check the weather stripping as the top is currently on its storage rack which puts the interior side right in your face.

We occaisionally get rain around here in the summer and the trunk never got wet so it would stand to reason that the problem would be related to the hard top. Thanks for the suggestions,